Parsons (NYSE:PSN) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised its price target on Parsons from $53 to $63 and maintained a Buy rating, implying 22.55% potential upside from the previous close.
• Analyst sentiment is broadly positive: Parsons has a Moderate Buy consensus rating and a $64.33 average price target, based on 11 Buy, four Hold, and one Sell rating.
• Parsons beat quarterly estimates, reporting earnings of $0.89 per share versus $0.80 expected and revenue of $1.65 billion versus $1.62 billion expected; revenue rose 1.8% year over year.

Parsons (NYSE:PSN - Get Free Report) had its price target boosted by equities research analysts at Citigroup from $53.00 to $63.00 in a research note issued on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's price objective points to a potential upside of 22.55% from the company's previous close.

A number of other research analysts also recently commented on PSN. William Blair reaffirmed an "outperform" rating on shares of Parsons in a report on Wednesday, July 29th. Truist Financial reissued a "buy" rating and set a $60.00 price objective (down from $75.00) on shares of Parsons in a research note on Thursday, July 30th. TD Cowen decreased their price objective on Parsons from $72.00 to $62.00 and set a "buy" rating on the stock in a research report on Tuesday, October 6th. The Goldman Sachs Group lowered their price objective on Parsons from $69.00 to $60.00 and set a "neutral" rating for the company in a research note on Monday, August 3rd. Finally, Jefferies Financial Group upgraded Parsons from a "hold" rating to a "buy" rating and set a $52.00 target price for the company in a report on Sunday, August 2nd. Eleven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $64.33.

Parsons Price Performance

PSN traded down $0.08 during trading hours on Tuesday, hitting $51.41. The company's stock had a trading volume of 270,539 shares, compared to its average volume of 1,292,871. The business's 50-day moving average price is $45.98 and its 200-day moving average price is $53.56. Parsons has a 12 month low of $36.26 and a 12 month high of $88.00. The stock has a market cap of $5.43 billion, a price-to-earnings ratio of 37.60, a P/E/G ratio of 4.21 and a beta of 0.69. The company has a current ratio of 1.59, a quick ratio of 1.59 and a debt-to-equity ratio of 0.49.

Parsons (NYSE:PSN - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The company reported $0.89 EPS for the quarter, beating the consensus estimate of $0.80 by $0.09. Parsons had a net margin of 2.33% and a return on equity of 8.11%. The business had revenue of $1.65 billion during the quarter, compared to analyst estimates of $1.62 billion. During the same quarter last year, the business earned $0.86 earnings per share. Parsons's quarterly revenue was up 1.8% compared to the same quarter last year. Sell-side analysts expect that Parsons will post 2.16 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Parsons

Several hedge funds have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP lifted its stake in Parsons by 10.5% in the first quarter. Dimensional Fund Advisors LP now owns 1,892,400 shares of the company's stock worth $102,494,000 after purchasing an additional 179,463 shares during the last quarter. Primecap Management Co. CA bought a new position in shares of Parsons during the second quarter valued at approximately $89,697,000. Van ECK Associates Corp raised its holdings in shares of Parsons by 389.3% in the second quarter. Van ECK Associates Corp now owns 1,125,767 shares of the company's stock worth $58,979,000 after buying an additional 895,690 shares during the period. Cooper Creek Partners Management LLC raised its holdings in shares of Parsons by 1,248.6% in the first quarter. Cooper Creek Partners Management LLC now owns 505,128 shares of the company's stock worth $27,363,000 after buying an additional 467,672 shares during the period. Finally, Aberdeen Group plc lifted its stake in shares of Parsons by 2,784.1% during the 3rd quarter. Aberdeen Group plc now owns 495,026 shares of the company's stock worth $20,281,000 after acquiring an additional 477,862 shares during the last quarter. 98.02% of the stock is currently owned by institutional investors.

Parsons Company Profile

Parsons Corporation is a technology-focused engineering and infrastructure company serving government and commercial clients. Its work includes engineering, construction management, program management, and technical services for complex projects and missions. The company operates through its Federal Solutions and Critical Infrastructure businesses. Federal Solutions provides services in areas such as defense, intelligence, cybersecurity, space, and missile defense. Critical Infrastructure supports projects involving transportation, water, environmental remediation, and other essential infrastructure.

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